TREC Adopts New Form for "Information About Broker Services" - to Take Effect on 2/1/16

Trey Wilson San Antonio Texas Real Estate Attorney, Trey Wilson Real Estate Lawyer in San Antonio wrote:

The Texas Real Estate Commission met on November 2, 2015, and approved all of the proposed changes to the promulgated TREC contract forms. Use of these new contract forms will become mandatory for all TREC licensees on January 1, 2016.

In addition, the Commissioners adopted a new form for the "Information About Broker Services" disclosure.  The new form will go into effect on February 1, 2016, and can be found HERE.  The "old" IABS form was adopted in October 2011. 

The new form contains clear consumer notices related to the duties of brokers-- and to the respective parties -- as follows:

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): 

• Put the interests of the client above all others, including the broker’s own interests;  

• Inform the client of any material information about the property or transaction received by the broker;  

• Answer the client’s questions and present any offer to or counter-offer from the client; and 

• Treat all parties to a real estate transaction honestly and fairly. 

 The new form also contains a written recommendation that agreements with brokers should be in writing:

0. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:

   
   

   • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. 

   
   

   •  Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

Another significant feature is a space for real estate licensees to provide all parties with contact information (as opposed to just a signature)

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.